State & Local News
Maryland Urges FERC to Extend Energy Price Caps
March 21, 2026
Maryland Governor Wes Moore and the Maryland Energy Administration have formally urged the Federal Energy Regulatory Commission (FERC) to approve PJM Interconnection's proposal to extend the capacity auction price cap and floor through the 2029/2030 delivery year. This extension aims to protect Maryland ratepayers from extreme energy cost spikes by maintaining an approximately $325/MW-day price cap in the PJM regional market. The filing, submitted on February 27, 2026, represents a critical short-term measure to stabilize energy costs while Maryland pursues broader strategies for energy affordability and generation.
- Why this matters: Procurement professionals should note the potential continuation of price caps affecting capacity market pricing and contract negotiations within the PJM footprint.
- The extension signals ongoing regulatory support for market interventions to mitigate volatility, impacting energy suppliers and contractors bidding on capacity-related services.
- Organizations involved in energy procurement and infrastructure development in Maryland and the PJM region may need to adjust financial models and contract terms to reflect capped capacity prices through 2030.
- This development highlights the importance of monitoring FERC decisions on market rules that directly influence procurement costs and risk management in energy projects.
I have been crystal clear that the costs being passed along to our residents from out-of-control capacity market auctions are unjust and unacceptable.
— Governor Wes Moore
Agencies
Maryland Energy Administration, PJM Interconnection, Federal Energy Regulatory Commission, Maryland General Assembly, Office of Governor Wes Moore
Contracts
Approximately $325/MW-day price cap